Bitcoin is currently trading below $92,000, and the market is showing clear signs of exhaustion as selling pressure increases. Fear has pushed sentiment towards the bearish end of the spectrum, with many analysts now claiming that BTC may be entering a new bear market. The loss of key support levels and the rapid acceleration of downside volatility have only fueled these concerns, especially as short-term bonds continue to capitulate widely.
Related reading
However, not all prospects are bearish. Some analysts believe that Bitcoin may be forming a local bottom as the current correction resembles previous mid-cycle retracements seen during strong bull markets. They argue that the broader macro environment remains supportive and that long-term bonds have shown no signs of structural weakness. As selling pressure concentrates among weak hands, the possibility of a reversal increases – especially if forced sellers exhaust themselves.
Adding to the uncertainty, new on-chain data from Lookonchain revealed that Bitcoin OG Owen Gunden just deposited all of his remaining 2,499 BTC into Kraken about an hour ago. Such moves often lead to speculation, as currency deposits from early holders can signal potential selling. But historically, similar events have also occurred near the bottom of the cycle, when panic is at its peak.
A massive BTC transfer leads to market speculation
According to new data from Lookonchain, Bitcoin OG Owen Gunden just did that deposited put his remaining 2,499 BTC (worth $228 million) into Kraken about an hour ago. This move has immediately raised questions across the market, as large currency deposits from early whales often indicate potential selling pressure.
What makes this development even more remarkable is the context: just two weeks ago, Lookonchain reported that Gunden appeared ready to offload its entire supply of 11,000 BTC – a position worth more than $1.12 billion at the time. Now, with this latest deposit, it appears he has officially completed the move.
For many traders, this confirms that one of the oldest and largest long-term holders has exited the market completely or is preparing to exit the market. Such whale behavior could increase fear during correction phases, especially as Bitcoin continues to struggle below $92,000. Moves of this magnitude not only add to short-term volatility, but also influence sentiment by indicating that even early accumulators can reduce exposure.
Historically, however, capitulation events of long-term holders have often coincided with or preceded major turning points. If this massive transfer marks the end of the Gunden sell-off, the market could quickly absorb the pressure, potentially paving the way for a recovery once fears subside.
Related reading
Short-term trend is still under pressure
Bitcoin’s 4-hour chart shows a market that remains firmly under short-term selling pressure, despite occasional rebounds. The price is struggling to regain $92,000, a level that previously acted as support but is now acting as resistance. The series of lower highs and lower lows highlights an ongoing downtrend that has defined BTC’s trajectory since early October.
All the major moving averages – the 50 SMA, 100 SMA and 200 SMA – are above the current price action and pointing downward. This alignment confirms a clear bearish structure in the near term. Every time BTC tries to recover, it encounters strong resistance at these declining MAs, indicating that sellers remain in control. The most recent bounce barely reached the 50 SMA before being rejected again, reinforcing the weakness in buyer momentum.
Related reading
Volume remains high despite downturns, indicating that selloffs are still driven by conviction and not random volatility. Buyers are stepping in around the $89,000-$91,000 zone, but so far this support has only led to temporary pauses rather than meaningful reversals.
For a structural shift, BTC would need to at least reclaim the $95,000 area and break above the 100 SMA. Until then, the trend continues to lean towards further downward developments or continued consolidation around current levels.
Featured image of ChatGPT, chart from TradingView.com